Q2 STOCKS TO BUY

3 Stocks Bucking the Broad-Market Landslide

Paratek announced strong second-quarter sales for its antibiotic drug

Digital Content Manager
Aug 7, 2019 at 3:17 PM
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Stocks are lower again today, as traders fret over sinking bond yields. Three stocks bucking the broad-market trend, however, are Oprah affiliate WW International Inc (NASDAQ:WW) -- formerly known as Weight Watchers -- and biotech issue Paratek Pharmaceuticals Inc (NASDAQ:PRTK), as well as space technology concern Maxar Technologies Inc (NYSE:MAXR).  Below, we'll look at why WW, PRKT and MAXR stocks are higher.

WW Eyes Best Day in Years After Earnings

WW stock is skyrocketing after unveiling second-quarter earnings and revenue that beat analysts' expectations. The diet concern lifted its full-year profit outlook, too. The stock has just nearly closed its February bear gap as a result, now up 39.1% to trade at $29.24, putting it near the top of the Nasdaq today. What's more, WW is pacing for its best session since October 2015.

Analysts have been rushing in with bull notes, too. BofA-Merrill Lynch upgraded the stock to "buy" from "underperform," and hiked its price target to $27 from $25. Likewise, UBS and SunTrust Robinson lifted their price targets, and J.P. Morgan Securities established a new December 2020 target price of $27 versus its $22 estimate for 2019. However, the consensus 12-month price target of $28.56 represents a slight discount to current levels, and with nine "hold" or worse ratings on the table, compared to only two "strong buys,"  more upbeat analyst attention could ensue.

Drug Sales Data Boosts PRTK Stock 

Paratek Pharmaceuticals stock is up 32% to trade at $4.08, after announcing $1.7 million in second-quarter sales for its antibiotic drug Nuzyra. The firm cited "a significant increase in demand" and "continued success in obtaining access" for the drug spike. The stock is eyeing its best day since 2011 in response, and is on course to close atop its 60-day moving average for the first time since March. 

Should some of these gains hold, an exodus of bears could help propel the stock even higher. Short interest surged almost 5% in the last most recent reporting period. The 10.67 million shares sold short represent a hefty 34.3% of the stock's available float. What's more, it would take over a month to cover all these bearish bets, at PRTK's average pace of trading. 

Earnings Beat Boosts MAXR Stock 

Maxar Technologies entered the earnings confessional today, too. While the company reported second-quarter revenue that fell below analysts' estimates, its adjusted per-share loss of 35 cents was slimmer than the 57-cent loss expected by Wall Street. Analysts are chiming in, too. Both BMO Capital and CIBC lifted their price targets, to $8 and $5.50 respectively.

Now MAXR is trading up 12.2% at $8.04, testing its footing right atop the $8 region. The shares are set to topple their 10-day moving average for the first time in nearly a month, but remain 33% lower year-to-date. 
 
 

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